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Journal Entries for Merchandise Transactions on Sellers and Buyers BooksPerpetual System The following transactions occurred between the Decker Company and Mann Stores, Inc., during March:

Journal Entries for Merchandise Transactions on Sellers and Buyers BooksPerpetual System
The following transactions occurred between the Decker Company and Mann Stores, Inc., during
March:
Mar. 8 Decker sold $14,000 worth of merchandise with a cost of
to Mann Stores with terms of 2/10, n/30
10 Mann Stores paid freight charges on the shipment from Decker Company $500
12 Mann Stores returned $2,000 of the merchandise at a $1,600
17 Decker received full payment for the net amount due from the March 8 sale.
20 Mann Stores returned goods that had been billed originally at $800 cost of
Decker issued a check for $784
Required
Prepare the necessary journal entries for (a) the books of Decker Company and (b) the books of Mann
Stores, Inc. Assume that both companies use the perpetual inventory system.
a.
DECKER COMPANY GENERAL JOURNAL
Date Description Debit Credit
Mar. 8 Accounts Recievable 14,000
Sales Revenue 14,000
Sold goods to Mann Stores
terms 2/10, n/30
8 Cost of Goods Sold 96,000
Inventory 96,000
Cost of goods sold to Mann Stores
12 Sales Returns + Allowances 2,000
Accounts Recieveable 2,000
Issued credit memo to Mann Stores for
returned goods
12 Inventory 1,600
Cost of Goods Sold 1,600
Cost of goods returned by Mann Stores
17 Cash 11,760
Sales Discount 240
Accounts Receivable 12,000
Received payment in full from Mann Stores
20
Paid Mann Stores for returned goods.
20
Cost of goods returned by Mann Stores
b.
MANN STORES GENERAL JOURNAL
Date Description Debit Credit
Mar. 8
Purchase goods from Decker Company
terms 2/10, n/30
10
Paid freight charges on Decker shipment
12
Received credit memo for goods returned to
Decker Company
17
Paid Decker Company in full
20
Received check for goods returned to
Decker Company

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